Some airlines and airports are struggling with post-covid demand for travel.
Anadolu Agency | Anadolu Agency | Getty pictures
LONDON – Delays, cancellations and strikes. It has been a messy time for many European tourist hotspots as airlines and airports struggle to cope with staffing problems and accumulated travel demand for Covid-19 lockdowns.
Thousands of flights have been canceled and travelers have been queuing for hours at passport control and baggage collection at airports across Europe – and the problems are expected to drag on.
On Monday, the Scandinavian airline SAS canceled 173 flights, more than half of its schedule, when a breakdown in wage negotiations sparked a pilot strike. It said the strike would force it to cancel half of SAS’s scheduled flights and affect about 30,000 passengers every day.
“Flights this summer are fraught with uncertainty, both for passengers and airlines,” Laura Hoy, an equities analyst at Hargreaves Lansdown, told CNBC via email.
“Long delays and cancellations are likely to solidify consumers’ desire to travel, while airlines are on a fine line between trying to tackle the post-pandemic travel boom and preparing for the likely downturn ahead as economic conditions worsen.”
According to aviation data company Cirium, 400 flights were canceled at all UK airports between 24 June and 30 June, representing an increase of 158% from the same seven days in 2019.
And it’s outside the high summer season – usually between July and early September in Europe.
London’s busiest airport, Heathrow, asked airlines last week to cut back on flights as passenger numbers were above what it could handle. Some passengers were unaware that their flight had been canceled, while others complained about the long queues.
There will continue to be disturbances over the summer.
Stephen Furlong, senior industrial analyst at Davy
Meanwhile, low-cost airline easyJet has cut thousands of flights over the summer in an effort to minimize the risk of clutter. Its chief operating officer, Peter Bellew, resigned Monday after the disruption. The airline said it is “absolutely focused on our day-to-day operations” and that it has “taken preventative measures to build additional resilience for the summer due to the current operating environment.”
Many have also faced travel problems in the US as they appeared to be traveling over the weekend of July 4, with more than 12,000 flights delayed and hundreds canceled, though the disruption eased significantly on Monday.
And travel chaos is unlikely to relax in the coming months, according to Stephen Furlong, senior industry analyst at Wealth Manager Davy.
“There will be interruptions that continue into the summer, whether ATC [freight] driven or ground handling or security personnel or actually self-inflicted working conditions from the airlines,” he added.
In France in June, a quarter of flights were canceled at the main airport in Paris due to a workers’ strike.
And more strike-induced unrest may be on the way. British Airways is preparing for a staff strike in the coming weeks as workers demand a 10% pay cut installed during the pandemic be reversed. And Ryanair workers in Spain said at the weekend that they would strike for 12 days in July and push for better working conditions.
What’s causing the disruption?
There are several causes for travel chaos, and they are mostly industry-wide issues rather than a country- or airline-specific problem. On the same subject : Travel Experts: Give yourself extra time to avoid airport delays.
“The speed with which passengers have returned to the clouds since the spring has surprised the airlines a bit and the airports too. They simply do not have the staff right now that we need for a summer with a full schedule,” Alexander Irving, European transport analyst at AB Bernstein told CNBC’s “Squawk Box Europe” last week.
Many airlines, airport operators and other companies in the travel sector resigned during the pandemic when their business came to a standstill. Many of these workers were looking for opportunities elsewhere and have not returned to the sector, while others were pushed for early retirement.
“Ultimately, we need more staff,” Irving said.
In addition, it is difficult to attract new talent right now due to changes in the labor market, such as the so-called Great Resignation – when workers chose to quit their jobs, often without someone else in line, in their search for a better working life balance.
Hiring new people is also a medium- to long-term solution, as in many travel-related jobs, training is mandatory before workers can start their jobs.
At the same time, many of those who stayed in the sector do not feel adequately compensated and have complained about their working conditions.
That means “probably ultimately paying people more and treating them a little better,” Irving said of labor issues and strikes.
At Amsterdam’s Schiphol Airport, a group of cleaners, baggage handlers and security personnel will be paid an additional 5.25 euros ($ 5.55) per hour this summer, according to Reuters. However, the same airport announced that it will limit the number of passengers this summer, especially to reduce disruption.
Other countries are also struggling to improve the situation at their airports. In Spain, the police are hiring more staff at some of the country’s busiest airports, and Portugal is also increasing its border control staff.
“The response from most companies when the pandemic hit was to reduce capacity in line with the expectation of a sustained period of lower growth. However, the pandemic delivered a different result: one in which the global economy was virtually shut down and then turned on again within short period. “Roger Jones, London Stock & amp; Capital, told CNBC.
He said that in addition to the lack of labor market, inflation is also a problem.
“Cost inflation, particularly fuel and wages, is exacerbating the situation and making it a really difficult operating environment that weighs on profitability,” he said via email.
Many airlines, including British Airways and Air France-KLM, received financial support from governments during the pandemic to avoid collapse. But a number of unions and airlines are now demanding more help from governments to support the revitalization of the sector.
Despite strikes, cancellations and other disruptions, some analysts are still positive about the sector, claiming that the recent situation has been “overplayed”.
“I feel it has been overplayed by the media and the vast majority of flights are in operation and on time. Ryanair, for example, while operating 115% of capacity before Covid, has planned this and has largely avoided disruption until further, “says Davys. Furlong said via email.
